Ontario’s newly passed pay transparency legislation — requiring employers to include salary ranges in job postings — is set to reshape recruiting practices across the province, as companies navigate a cooling labour market and candidates face tougher odds in increasingly automated hiring processes.
The new rules mark a significant shift in how employers position open roles and how jobseekers assess opportunities, according to recruiting firm Hays, which says the legislation is arriving at a moment when many organizations are already slowing hiring activity despite continued outward signs of demand.
Drawing on frontline recruiting experience and insights from the Hays 2026 Salary & Hiring Trends Guide, the company expects salary disclosure to influence not only compliance and posting practices, but also broader compensation strategy, internal equity reviews, and employer branding decisions.
“Ontario’s newly passed Pay Transparency legislation, which requires employers to include salary ranges in job postings, marks a major shift in how companies recruit and how candidates evaluate opportunities,” Hays said in a statement shared with media.
While salary disclosure is often framed as a tool to empower workers and improve market efficiency, Hays argues it will also force employers to be more deliberate about what roles they post, how quickly they move, and what they are willing to pay — particularly as hiring becomes more selective.
According to Hays, one of the most immediate impacts will be greater scrutiny of posted positions that remain open for extended periods, even as companies slow recruitment behind the scenes. “Many employers are holding or slowing hiring, even when roles remain posted,” the firm said.
That mismatch between posted jobs and actual hiring momentum has been a growing frustration for candidates, particularly those applying through online portals where competition can be intense. Hays says the new legislation may raise expectations for clarity and responsiveness, but it will not necessarily translate into faster decisions.
“Candidates face historically low odds when applying online, as competition increases and automation filters applications earlier,” the company noted, pointing to the expanding use of applicant tracking systems and screening tools that can narrow candidate pools before a human recruiter reviews a resume.
For employers, the legislation may also sharpen the focus on return on investment in each hire. As economic uncertainty persists and budgets tighten, Hays says organizations are increasingly evaluating roles through the lens of immediate business value rather than longer-term capacity building.
“Employers are becoming more selective and increasingly focused on clear ROI, skills alignment, and cultural fit,” the firm said.
Hays expects pay transparency requirements to accelerate internal conversations about how compensation is structured across teams, especially in cases where long-serving employees may be earning less than what the market now demands for new hires.
“Pay transparency will force companies to confront internal pay equity, role clarity, and compensation strategy — not just compliance,” the firm said.
The organization is offering expert commentary on how the law could reshape recruiting and candidate behaviour in Ontario, including whether employers may adjust job posting volumes in response to the added scrutiny that comes with public salary ranges.
Among the questions Hays says it can address are “How salary disclosure will change employer behavior in Ontario” and “Whether transparency will speed up hiring — or cause employers to post fewer roles.”
The firm also points to a growing need for candidates to interpret posted salary bands carefully and to negotiate strategically, particularly when ranges are wide or when total compensation depends on bonuses, benefits, or variable pay.
Hays said it can provide guidance on “How candidates should interpret posted salary ranges and negotiate effectively,” as well as “The impact on recruiter workflows, candidate trust, and employer branding.”
While advocates of transparency argue that salary disclosure can reduce time wasted on mismatched expectations, Hays cautions that publishing pay ranges will not, on its own, fix the structural issues that make it difficult for candidates to break through in a crowded market.
The company notes that it can speak to “Why transparency alone won’t fix the ‘resume black hole’ — and what candidates must still do to stand out,” referencing the growing challenge of being seen in high-volume application streams.
Hays has identified three spokespeople available for interviews on the topic: “Travis O’Rourke – Recruiting & labor market commentary,” “Louisa Benedicto – HR, pay transparency, and talent strategy,” and “Dave Brown, CEO, Hays Americas – macro hiring trends and employer behavior.”
The firm says it is prepared to share additional insight as Ontario employers and jobseekers adapt to the new requirements and as recruiters recalibrate processes around compensation disclosure, candidate expectations, and internal pay alignment.
“If you’re covering Ontario’s new pay transparency rules, hiring slowdowns, or the future of recruiting in Canada, we’d be happy to arrange interviews or share additional insight,” the statement said. “Just let us know if you’re interested and we’ll see to the details.”
